Community at the limit: Hessian cities are fighting with record -breaking deficits!

Community at the limit: Hessian cities are fighting with record -breaking deficits!

Hessian municipalities are facing increasing financial challenges. More and more cities and municipalities are complaining about a heavily burdened budget Situation. The current situation is worrying because the increased expenses for personnel and social benefits exceed the income. As n-tv report, including Andreas Siebert from the district of Kassel that the systems could implode. He describes the situation of the municipalities as precarious and demands fundamental changes.

In a resolution that was written by five district administrators from Kassel, Schwalm-Eder, Waldeck-Frankenberg, Werra-Meißner and Hersfeld-Rotenburg, those responsible criticize inadequate financing by the federal government and the country. They also call for a fairer distribution of tax funds. The municipalities show up at the end of their performance and threaten massive cuts in public services.

rising deficits in the cities

According to an analysis of the federal taxpayer Hesse, the financial situation in the cities, especially with more than 20,000 inhabitants, is alarming. Of 54 cities that have passed their household, 39 could not present a balanced budget - a worrying value of over 72 percent. It was still 63 percent for 2023. taxpayers Hesse also reports that cities such as Darmstadt and Marburg have significant budget deficits. Darmstadt plans a deficit of around 69 million euros, while Marburg even starts the new budget with 77.5 million euros.

The trends identified are not new, but are a continuous increase in costs. Due to rising wages, the growing number of refugees as well as a higher price level and increased interest rates are under pressure. Jochen Kilp, board member of the Hessian taxpayers' association, emphasizes that the output side urgently needs to be considered in order to set priorities.

rising tax burdens

Current developments show that some municipalities are forced to increase their lifting rates for property tax B. Nine cities have already taken this step. Darmstadt recorded the highest increases with an increase of 340 points, followed by Groß-Umstadt and Riedstadt. Riedstadt now has the highest rate for property tax B with 985 percent. The Hessian Statistical State Office Meanwhile, a financing deficit in the core budget of the Hessian municipalities for 2023 in the amount of 688.1 million euros-the first deficit since 2015.

In addition, the municipalities are confronted with new compulsory services, which are often decided without adequate financial resources. This leads to a further tightening of the situation, since the income is not sufficient to cover the ongoing expenses. Wiesbaden named the lack of connexity as an example in the communication of the district councils, which increases the financial problems.